Alpha Consortium Proposes to Purchase up to $10 Million In ONCS Securities upon Abandonment of the China Grand Takeover; Will Lead Consortium to Provide up to Additional $20 Million Following Clinical Results Due in Early 2020
Would Not Require Transfer of Control or Any Unfavorable Terms of China Grand Takeover
Alpha Holdings, Inc. (KOSDAQ: 117670) ("Alpha"), the largest stockholder of OncoSec Medical Incorporated (NASDAQ:ONCS) ("OncoSec"), with an approximate 15.1% ownership stake, today announced key terms of an alternate $30 million financing proposal it is willing to offer to OncoSec. Alpha believes the key terms of its proposed financing are significantly more favorable to the Company and its stockholders than those offered by China Grand Pharmaceuticals and Healthcare Holdings ("CGP") and Sirtex Medical US Holdings, Inc. ("Sirtex"), an affiliate of GCP (together, "China Grand"). Specifically, under the terms of the proposal:
- Alpha would lead a consortium that would provide up to $10 million of financing during the first quarter of 2020 by purchasing OncoSec shares and/or convertible bonds.
- Alpha will seek to ensure OncoSec has the necessary funding in the future to ensure the Company's continued success, including by providing up to an additional $20 million in funding over the next 12 months.
- To preserve the maximum value of the Company and stockholders' rights, Alpha's proposal would require OncoSec to terminate all agreements with China Grand, including the License Agreement with CGP and Services Agreement with Sirtex. In addition, Alpha's proposal would also require the elimination of all "golden parachute" payments payable to current members of management.